Assume that you are the owner of a wholesale store and that you operate as a sole trader. On April 1, 2019 you had the following items in your business:

Stock, $14,500,000; Motor vehicles, $15,000,000; Creditors/Accounts payable- J. Downey $1,500,000, P. Wright $2,000,000; Cash in hand, $300,000; Pre-paid insurance, $80,000; Bank loan, $4,000,000; Furniture & fittings, $3,600,000; Accrued rent, $100,000; Cash at Bank, $12,000,000; Debtors/Accounts receivable-A. Howard $3,000,000, S. Simpson $2,800,000; K. Kirk $350,000.   

During April 2019 the following business were transacted:

April 1- Bought goods on credit from B. Burke $4,500,000.

          3- Paid rent with cheque $150,000.

          5- Sold goods on credit to A. Harvey, $5,600,000.

          7- Cash sales, $400,000.

        10- Paid electricity bill $130,000 cash.

        12- Paid J. Downey $1,000,000 by cheque.

        15- Sold goods on credit to S.Simpson, $7,000,000.

        15- Paid P. Wright $1,500,000 by cheque.

        18- S.Simpson paid $3,500,000 by cheque.

        19- Bought goods on credit from F. Smith, $2,400,000.

        22- Sold goods for cash to T. Royal, $1,800,000.

        24- Returned damaged goods valued at $300,000 to B.Burke.  

        25- Paid wages by cheque, $3,000,000.

        27- Paid insurance $70,000 cash.

        28- Paid $50,000 cash for transportation charge for goods bought from F. Daley.

        28- Received a cheque for $2,200,000 from A. Howard.

        29- Sold goods on credit to V. James, $6,200,000.

        29- Miscellaneous expenses paid with cheque, $1,250,000.

        29- Bought goods for cash from C. Croft for $350,000.

        30- Banked $1,000,000.

        30- A. Harvey returned incorrect goods delivered to him valued at $200,000.

        30- The balance on K. Kirk’s account was written off as irrecoverable.

        30- Received $300,000 cash as commission for selling goods for D. Riley.

         Notes:

(i)                 On April 30, 2019 stock on hand was valued at $11,000,000.

(ii)               Office furniture and motor vehicles are to be depreciated at 10% and 20% per annum respectively using the straight line method.

(iii)              $100,000 in rent was owed on April 30, 2019.

(iv)             On April 30, 2019 wages paid in advance amounted to $200,000.

(v)               There was no accumulated depreciation on fixed assets as at April 1, 2019.

Required:

Use the above information to prepare the following for the month of April 2019

(g)   The Sales Ledger.

(h)   The Purchases Ledger.

(i)     The General/Nominal Ledger.

Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T-1 and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1.

Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10% next year, but the firm’s cost structure will remain the same.

Required:

1. Find the expected change in annual operating income by dropping T-2 and selling only T-1.

2. By what percentage would sales from T-1 have to increase in order to make up the financial loss from dropping T-2? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

3. What is the required percentage increase in sales from T-1 to compensate for lost margin from T-2, if total fixed costs can be reduced by $54,000? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

Sinkal Co. was formed on January 1, 2018 as a wholly owned foreign subsidiary of a U.S. corporation. Sinkal's functional currency was the stickle (§). The following transactions and events occurred during 2018: Jan. 1 Sinkal issued common stock for §1,000,000. June 30 Sinkal paid dividends of §20,000. Dec. 31 Sinkal reported net income of §80,000 for the year. Exchange rates for 2018 were: Jan.1 § 1 = $ 0.42 June 30 § 1 = $ 0.46 Dec.31 § 1 = $ 0.48 Weighted average rate for the year § 1 = $ 0.44 What was the amount of the translation adjustment for 2018? Multiple Choice $52,000 negative translation adjustment. $62,800 negative translation adjustment. $62,800 positive translation adjustment. $440,000 negative translation adjustment. $26,000 positive translation adjustment.

Cane Company manufactures two products called Alpha and Beta that sell for $150 and $110, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 108,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

Required:

1. What is the total amount of traceable fixed manufacturing overhead for each of the two products?

2. What is the company’s total amount of common fixed expenses?

3. Assume that Cane expects to produce and sell 86,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?

5. Assume that Cane expects to produce and sell 101,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 16,000 additional Alphas for a price of $104 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 9,000 units.

a. What is the financial advantage (disadvantage) of accepting the new customer’s order?

b. Based on your calculations above should the special order be accepted?

Answer the following questions

1) How does ASC 606 — Revenue From Contracts With Customers(new standard for revenue recognition) impact on debt to equity ratio and current ratio. Please explain in detail.

2)Provide why the following statement is false.Provide proper explanation

"Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognise revenue"

On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.

(1) Prepare the updated stockholders' equity section after the distribution is made.
(2) Compute the number of shares outstanding after the distribution is made.

Are relevant revenues and relevant costs the only information needed by managers to select among alternatives? Examples,

This time Ron is at his wits end. He has sent the accounting team out of his office to rework the numbers. "That simply cannot make sense. If I'm making more than I'm spending, it's a good decision; right?" He walks into your office for your weekly meeting and asks rhetorically "If I'm spending $2,000,000 today on a new plant and that new plant is going to produce $205,000 for each of the next ten years in income how can that possibly be a negative net decision for the company?"

Can you explain to Ron the concept involved and how that could be a "negative net decision"?

Provide constructive feedback to at least two other students' postings.

Your company is trying to decide between the following three projects. In your calculations, assume a 6% interest rate. Project A Project B Project C Project A has $400 in upfront costs in year 0 and gets 250 in benefits in year 0. It accrues $300 in benefits each year in years 1-3, and has annual costs of $200 in years 1-3. Project B costs $1300 in year 0 and has no benefits in year 0. It accrues $650 in benefits each year in years 1-3. Annual costs in years 1-3 are $450. Project C has $1000 in upfront benefits and 1600 in costs in year 0. It accrues 600 in benefits in years 1-3 and 350 in costs in years 1-3. Time value of money. Using the discounting techniques we learned in class (assume an interest rate of 6%), appropriately discount the costs and benefits of the three projects. Which project will have a higher return on investment? Be sure to show your work (10 pts). Which project achieves payback faster? (5 pts)?

For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.80 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.40 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company’s new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company’s costing system. Direct material and direct labor costs per unit are as follows: LEC 40 LEC 90 Direct materials $ 30.00 $ 50.00 Direct labor (0.40 hours and 0.80 hours @ $15.00 per hour) $ 6.00 $ 12.00 Management estimates that the company will incur $912,000 in manufacturing overhead costs during the current year and 60,000 units of the LEC 40 and 20,000 units of the LEC 90 will be produced and sold. 1-a. compute the predetermined overhead rate assuming that the company continues to apply manufacturing overhead cost on the basis of direct labor hours. 1-b. using this rate and other data from the problem, determine the unit product cost of each product. 2. management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based costing systemm would have all following four activity cost pools: Activity Cost Pool Activity Measure Estimated Overhead Cost Maintaining parts inventory Number of part types $ 225,000 Processing purchase orders Number of purchase orders 182,000 Quality control Number of tests run 45,000 Machine-related Machine-hours 460,000 $ 912,000 Expected Activity Activity Measure LEC 40 LEC 90 Total Number of part types 600 900 1,500 Number of purchase orders 2,000 800 2,800 Number of tests run 500 1,750 2,250 Machine-hours 1,600 8,400 10,000 Determine the activity rate for each of the four activity cost pools. 3. using the activity rates you computed in part 2 a. determine the per unit amount of manufacturing overhead cost that would be assigned to each product using the activity based costing system,. b. compute the unit product cost of each product

Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows:

*Common costs allocated on the basis of machine-hours.

†Common costs allocated on the basis of sales dollars.

Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company’s total general factory overhead or total Purchasing Department expenses.

Required:

What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years:

a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.

b. The liquidity of Nilo has   from the preceding year to the current year. The working capital, current ratio, and quick ratio have all  . Most of these changes are the result of an   in current assets relative to current liabilities.

Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions.

1. During January, the company provided services for $350,000 on credit.
2. On January 31, the company estimated bad debts using 1 percent of credit sales.
3. On February 4, the company collected $175,000 of accounts receivable.
4. On February 15, the company wrote off a $450 account receivable.
5. During February, the company provided services for $300,000 on credit.
6. On February 28, the company estimated bad debts using 1 percent of credit sales.
7. On March 1, the company loaned $16,000 to an employee, who signed a 9% note due in 3 months.
8. On March 15, the company collected $450 on the account written off one month earlier.
9. On March 31, the company accrued interest earned on the note.
10. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $9,000.

Required:

1. For items (a)–(j), analyze the amount and direction (+ or –) of effects on specific financial statement accounts and the overall accounting equation. TIP: In item (j), you must first calculate the desired ending balance before adjusting the Allowance for Doubtful Accounts. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)

Who are the stakeholders with whom a business should consult and what is the value of consultation and the involvement of stakeholders? 150–180 words

Please Follow Instructions And Do Not Copy and Paste From Another Source.

Menlo Company distrubutes a single product. The company's sales and expenses for last month follow: Sales $316, 000, per unit $20 Variable expenses 221,200 and 14 per unit Contribution margin 94,800 $6 Fixed expenses 74,400 Net operating income 20,400 1.what is the monthly break even point in unit sales and in dollar sales?2.Without resorting to computations, what id the total contribution margin at the break ever point? 3) How many units have to be sold each month to attain a target profit of $ 39,600? 4.Verify your answer by preparing a contribution format income statement at the target sales level. 5) what is the company's CM ratio? If sales increase by 81,000 per month and there is no change in fixed expense. by how much would expect monthly net operating income to increase?